New Ulm weekly review. [volume] (New Ulm, Minn.) 1878-1892, 1887-06-29
LONG AND SHORT Fla ULS.
The Interstate Commission Finally Renders a
Decision on the Fourth Section of the
Law.

The Railroad Companies Allowed to 30 Guided
by Their Own Judgement in Constructing
the Act.
Washington, June 15.-The Interstate
: commerce commission rendered tonight
the long-expected decision upon the fourth
section OF the Interstate act. which pro.
hlhlts "a greater charge for the transpor-
tatlon OF passengers and property over
a shorter than a longer distance
+. in the same direction under sub
: stantially similar circumstances
and conditioEs." The decision was made
upon the petition OF the Louisville & Nash
vile and other railroad companies which
were among the first to apply for relief
from the operation OF the fourth section.
The decision comprises more than ] 5, 900
words. The most important feature is
the announcement that the commission,
after mature consideration, is satisfied
that the statute does not require it,
in every instance OF an exceptional case
to grant it's order for relief. The decision
says:
Before the carrier is at liberty in it's de-
parture from the general rule, the carrier
must Judge for itself what are 'substanti-
ally similar circumstances and condi-
tions.' which preclude special rate, re-
bate or drawback which is made unlawful
by the law, since no tribunal is empowered
to Judge for it until alter the carrier has
acted; then only for the purpose OF deter
mining-whether its actions constitutes
violation OF law. The carrier Judges on
peril OF the consequences; bnt the special
rates. rebate Or draw back which it grants
are not illegal when it turns out that the
circumstances aud conditions were not
such as forbid it; and as congress clearly
intended this it must also, when using the
same words in the fourth section, have in
tended that the carrier whose privilege was
in some way limited by them. should act
upon its Judgment OF limiting circum-
stances and conditions The commission,
therefore, will not undertake to decide in
advance what constitutes Or what does
not constitute discrimination under Sub
stantially similar circumstances and con-
ditions," but will leave the railroad COM
panes IN fixing their tariffs to act upon
their own Judgment and at their risk sub
iecG to accountability before the commits
sion and the courts in eases where com
plant is made by Interested parties Of
violation OF the law.
TO GUIDE THE RAILROADS.
For the guidance, however, OF railroad
companies the commission has considered
at great length nearly all questions raised
under the fourth section Of the law, and
has reached conclusions which are sum-
married as follows:
First-The prohibition in the fourth Sec
ton against a greater charge for q shorter
than for q longer distance over the same
line in the same direction, the shorter be-
ing included within the longer distance as
qualified therein, is limited to cases in
which circumstances and conditions are
substantially similar.
Second-The phrase "under su stantially
similar circumstances and conditions,'' in
the fourth section, is used in the same
in tha do
the qualified form OF prohibition in the
fourth section, carriers are required to
judge in the first instance with regard to
similarity or dissimilarity Of circumstances
and conditions that forbid or permit n
greater charge for shorter distance.
Third-The Judgment OF carriers in re-
cspect to circums tances and conditions is
not final. but subject to the authority Of
the commission and courts TO decide
whether an error has been committed or
&C. whether the statute has been violated;
and in case OF a complaint for violation Of
the fourth section OF the act the burden of
proof is on the carrier to justify any de-
parture from the general rule prescribed
by the statute, by showing circumstances
and conditions, substantially dissimilar.
Fourth-The provisions OF section 1, re-
quiring charges to be reasonable and Just,
and OF section 2, forbidding unjust dis
elimination, apply when exceptional
charges are made under section 4, as they
do in other cases.
Fith-The existence OF actual competi-
ton which is Of controlhng force in respect
to traffic may make out dissi similar eircum-
stances and conditions emitting
the carrier to charge less
for longer than for a shorter haul over
the same line in the same direction, the
shorter being included in the longer in the
following cases: ~ When competition is
hu for WI ipba Il
ject to the provisions Of the statute. (2)
When the competition is with foreign or
other railroads which are not subject to-
the provisions OF the statute. (3) In rare
and peculiar cases OF competition between
railroads which subject to the statute
when the strict application OF the general
rule OF the statute would be destructive OF
compitition.
Sixth-When q greater charge in the ag-
geegate is made for the trans portation OF
passengers Or like kind OF property for a.
shorter than for a longar distance over
the same line in the same direction the
shorter not being included in the longer dis
tance it is notsufficient justification there
fore that traffic which is subjected to such
greater charge is way Or local traffic, and that
which is given more favorable rates is not,
nor is it sufficient Justification for such
greater charge that short haul traffic mo ore
expensive to the carrier unless when the
circumstances are SUCH as make it eXCep-
tionally expensive or long haul traffic eS-
ceptionally inexpensive, the difference be-
ing extraordinary and susceptible ofproof;
nor that a lesser charge on a longer haul,
merely a continuation OF favorable rates
under which trade centers, or individual es.
adjustments have been built up The
fact that long haul traffic will only bear
certain rates is no reason for carrying it
for less than cost at the expense OF other
traffic.
CONSIDERED IN DETAIL. srt.2s
Considering the cases governed by the
fifth section in the above abstract the COM
mission takes up the first, competltionwith
carriers by water, and says:
1t was fairly shown before US that in.
stances exist, and many will be found,
along the routes of the petitioners lines in
Kentucky, Tennessee, Georgia, Alabama,
Mississippi and Louisiana, three compet-
ing waterways force down railroad rates
below what it is possible to make them at